Thomson drops statement ‘on legal advice’

Embattled Labor MP
Craig Thomson
has dropped a plan to make a comprehensive statement about allegations of financial impropriety against him, now that a formal police inquiry has begun in NSW.

Mr Thomson said in a one- line statement yesterday that “due to police inquiries, on legal advice I am advised that it is inappropriate for me to make any statements at this stage".

He pledged last week to make a statement after NSW police found no evidence to support an inquiry into his use of a union credit card, which allegedly included $100,000 in cash advances and paying for escort agency services.

He denied the credit card allegations, which date from his tenure as national secretary of the Health Services Union between 2002 and 2007.

NSW police this week set up a task force to investigate fresh claims about financial dealings by Mr Thomson and the HSU national president, Michael Williamson. These relate to alleged commissions received for awarding printing work for the union, allegations denied by both men.

Strike Force Carnarvon was established by the NSW police after a further meeting with HSU national secretary Kathy Jackson in Sydney.

Mr Thomson’s decision comes as the Gillard government was looking to clear the air as federal parliament debates major legislative items such as the carbon tax and changes to immigration laws.

In Parliament yesterday, manager of opposition business
Christopher Pyne
asked Prime Minister
Julia Gillard
when she would ask Mr Thomson to keep his word on making his promised explanation.

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“Parliamentary statements by members of parliament are a question for those individuals," she replied.

Deputy opposition leader
Julie Bishop
asked Ms Gillard whether she agreed with the view it was inappropriate for any business or any union to use the funds of shareholders or members to pay for “sexual services".

In reply, Ms Gillard agreed with the statement made previously by Labor Minister Tanya Plibersek that such actions were inappropriate.

NSW police have also referred the file relating to the original credit card allegations to their counterparts in Victoria.